MARK Capital Management has handed its mixed-use scheme Borough Yards in south London over to investment firm and lender Cheyne Capital.
Borough Yards, London
MARK, which owned and managed the site set underneath Victorian railway arches near Borough Market, Southwark, agreed to hand the development over to lender Cheyne last July, first reported by the Financial Times this week.
MARK sold shares in the asset to Cheyne in a mutually agreed process, with the lender keen to harvest value from the scheme with no foreclosure event, sources told Property Week.
Borough Yards opened in 2022, but pre-leasing was disrupted by the impact of Covid-19 with asset values further impacted by interest rate hikes.
In 2023, Cheyne lent MARK £123m to refinance the 160,000 sq ft scheme, at which point it was 75% let. Property Week understands Borough Yard’s food and beverage space and offices are now fully let with its retail space close to 100% leased.
MARK launched a sales process for Borough Yards in 2024, but a sale to True Capital Partners fell through before completion. It elected to hand the site over to Cheyne following the failed sale.
MARK acquired the development site in 2015, when the company was known as Meyer Bergman. The site was acquired via the Meyer Bergman European Retail Partners II fund, a diversified fixed-life pan-European value-add fund, which focused on urban mixed-use investments and achieved final close in 2014.
Since rebranding to MARK, the company has pivoted away from urban regeneration projects towards urban last-mile logistics. Its Crossbay I portfolio was sold for £1.39bn (€1.6bn) to Prologis, while its Crossbay II fund raised £550m.
Borough Yards has 50 shops, restaurants and bars. Tenants include luxury cinema Everyman, and restaurants Bancone, Barrafina, Akara, Parrillan and Brother Marcus.
The most recently completed element of the development, Stonecutters Lane, was dedicated to “emerging independent and ethical brands”. Tenants included vegan and sustainable skincare brand Sknfed and handmade décor producer La Lune London.
MARK and Cheyne both declined to comment when contacted by Property Week.
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